Tavares said the convergence of three factors led to the problems: not selling vehicle inventory quickly enough; manufacturing issues, specifically with two unnamed plants; and lack of “sophistication in the way of reaching the market.”
“We had a convergence of three things that should have triggered, on my part and no one else, an immediate working group to address those things,” he told media Thursday after the company’s investor day at its Americas headquarters. from North. “When I say you are arrogant, I mean me. I mean the fact that I should have acted immediately recognizing that the convergence of those three problems was there.”
During the investor day, Tavares and his top lieutenants extensively updated investors on the company’s operations and how Stellantis plans to achieve ambitious financial goals amid economic and industry uncertainty. The company also reconfirmed its 2024 guidance and pledged to continue returning capital to shareholders going forward.
Tavares did not elaborate on manufacturing or marketing issues, but Stellantis’ vehicle inventory leads major U.S. automakers as the company has withheld incentives and cut marketing budgets. Stellantis’ U.S. sales fell 10% during the first quarter, leading to notable drops in revenue.
STLA shares lost 83 cents, or 3.9%, to $20.25.
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